>a new options trader he should focus on buying options only. 90% of options expire worthless the arbitrage between actual volatility and implied volatility costs him money statistically. > Or, at the very most, a covered call. A covered call he has to buy the underlying so added fees and it locks up the money anyway.
Sell a put when the price goes down the IV spikes when IV comes back down buy it back. If you get assigned the stock sell a covered call. the stock I recommend sells for like $1.75 and used to have 0 debt. The suggestion was to sell the $1 strike locking up the massive amount of $100. I've blown more than that drinking in a night! >I've had some stocks where I've sold covered calls on the same shares 4 or 5 times before it finally sold. I've done the same thing with puts, sell a put then buying it back over and over at different expiration dates.
What expiration do you sell at out. I buy LEAPS and sell 45 to 360 days out? What underlyings do you follow? For me its SPY, GLD, SLV, GDX no default risk and they are liquid and volatile enough to trade around my positions.
To get back on topic do you recommend this user trade options for income? He wanted low effort income.
Also what platform do you use, mine interactive brokers.
>asking Jow Forums for advice Just burn the money instead.
Blake Roberts
Just etsy. I think the stock is going to $110. I'm about 2k on an 18k investment right now.
James Bell
Film porn. Rent a camera and give an amateur porn wannabe $500. Put it on clips4sale and a 10 minute clip on pornhub. The ad revenue is a lot better than YouTube. The videos with millions of views make $10k or more
Adrian Lee
>I'm about 2k 2K up I mean.
Michael Walker
>etsy. If you believe in etsy that much you want to do this call purchase: Buy a 70 strike call that expires in Jan 2021 cost around $10 $1,000 is the cost. You'll have 480 days before the option goes to zero. If etsy keeps going up the price of the option goes up.
If esty is at $110 in Jan 2021, the option will allow you to buy the stock at $70 and therefore be worth $40. So $1,000 -> $4,000 $3,000 profit
It could be worth considering to learn. You made the $2k already so you'd be risking $1,000 of house money.
If you just held the Etsy stock $1000/$60 = 16 stock $110 - $60 = $50 16 x $50 = $800 So options gives almost 4x the profit.
